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State Aid - Decision by the EC and ruling of the CJEU

< previous | next > 27.03.2013

State Aid - Decision by the EC and ruling of the CJEU

The European Commission did not regard acquiring the bonds of SR Nauta by ARP (pl. Agencja Rozwoju Przemysłu) in the year 2009 as granting state aid, which means that SR Nauta is not obliged to pay off PLN 120 million. Furthermore, in case of another company - Buczek Automotive - the Court of Justice of the EU gave the ruling that the EC had unlawfully required the aid to be returned as it gave no grounds for obtaining any aid by the entity

The President of the Office issues opinions on aid schemes, notifies them to the EC and monitors the state aid granted to Polish entities. Moreover, on behalf of the Polish government, the President lodges appeals to the Court of the EU against these decisions by the European Commission which concern the state aid. Additionally, when dealing such cases, the President represents Poland before the Court of the EU and Court of Justice of the European Union (CJEU). Lately the President of UOKiK represented the Polish government in two cases - proceedings before the EC on the alleged aid granted to Stocznia Remontowej Nauta and proceedings before the CJEU in the case of Buczek Automotive. In both cases the rulings were in line with suggestions brought by UOKiK.

SR Nauta – decision by the EC

The decision by the EC issued on 20th March follows the proceedings concerning the alleged state aid granted to Stocznia Remontowa Nauta contrary to law. The proceedings regarded financial operations performed in 2009 and 2011, which resulted in taking over bonds of SR Nauta, amounting in total to PLN 120 mln, by Agencja Rozwoju Przemysłu. In January 2012, the Commission stated that the aid might be classified as unlawful state aid (neither notified to the Commission nor approved by it). However, having conducted the proceedings, the EC stated that the aid had not actually constituted the state aid, otherwise Poland would have been obliged to regain from SP Nauta PLN 120 mln within 4 months(increased by accrued interest rates for the period exceeding 3 years), which could endanger the company’s further operation. The decision by the Commission of 20th March 2013 concludes the proceedings and states that the transactions performed in 2009 and 2011 did not constitute state aid.

Buczek Autmomotive – ruling by the CJEU

Moreover, on 21st March 2013, the Court of Justice of the EU enforceably dismissed the appeal of the Commission, which had demanded the ruling by the Court of the EU of 17th May 2011 in the case of Buczek Automotive be overruled. The Court of the EU stated that the decision by the EC was not binding and consequently Buczek Automotive is not obliged to refund the granted state aid exceeding PLN 7 mln. The Commission appealed against the ruling of the CJEU. The latter took the stance of the company as well as the President of UOKiK supporting the entity on behalf of the Polish government, and decided that the Commission had failed to justify that Buczek Automotive had been awarded any state aid, and as a result dismissed the appeal of the EC. Following the judgement by the CJEU, the decision by the EC was regarded as invalid.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel.: +48 22 827 28 92, 55 60 314
Fax: +48 22 826 11 86
E-mail: [SCODE]bWNpZWxvY2hAdW9raWsuZ292LnBs[ECODE]

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See also:
ICPENICNPolish Aid